Of the many things I learned during last month’s CinemaCon, I was hardly expecting to discover at least two bits of information.
The first was about the CJ Marquee, the email newsletter you’re currently reading. The number of industry professionals that approached me asking about the absence of the newsletter was rather surprising. While we knew readership and engagement with the newsletter was very high among the exhibition and distribution community, and though it quickly became some of the most widely read editorial we publish here at Celluloid Junkie, I was amazed so many of you inquired about its status. The overwhelming consensus was that readers missed the Marquee and were hoping we might resume its publication.
We are extremely flattered that anyone would even notice it went missing a few months ago and grateful that so many find it to be a valuable weekly resource for updates on the cinema business. Thus, by popular request, we will once again begin sending out the Marquee on a weekly basis. Don’t worry, we won’t flood your inbox with an endless stream of newsletters. Simply sending one per week is aspirational enough.
The second observation which befuddled me was the number of senior level exhibition executives who told me that, regardless of the popular theory wherein the first quarter of 2024 was going to be a “train wreck” with box office and revenue “cratering” from a lack of new releases, their companies were actually doing okay. These executives whispered this news in hushed tones, looking over their shoulders to make certain nobody could hear them gloating. Or perhaps they were concerned a manufacturer or service provider might catch wind of their good fortune and raise prices.
Don’t get me wrong. These cinema operators weren’t saying everything is hunky dory or that first quarter revenue hadn’t flattened or declined. It most certainly has. Indeed, all of these executives mentioned attendance was off by at least 30% or more. Yet somehow, their revenue wasn’t off by nearly that amount. They also readily admit that this is mostly due to the premiumization of cinemas. Moviegoers are opting for premium formats and luxury offerings, including higher priced food and beverage items.
Over the past couple of weeks exhibitors who are public companies reported earnings and, though down as expected, they all seemed to agree business would pick up during the remainder of 2024.
And, while the market still must overcome some serious challenges, which we’ll be explore in more depth in the weeks to come, if there is any doubt about the potential of the cinema industry, then you wouldn’t know it from the way exhibitors are opening brand new movie theatres from the Ivory Coast in Africa to Mougins, France to Dallas, Texas. What’s worth noting is the unique nature these new theatres have in common and the expanded amenities they offer. You’ll begin to see a trend of higher end complexes that include restaurants, gaming activities and VIP auditoriums.
So, to everyone who prodded us into revisiting the Marquee, thank you. We look forward to living up to your expectations and making it worth your while to open each newsletter.
Exhibitors
Cinema Operators Delivers Mixed Financials During First Quarter of 2024
The success of “Avatar: The Way of Water” during the first quarter of 2023 was never going to help year-over-year comparisons when it came to reporting first quarter financials in 2024. Yet despite facing ongoing challenges due to the 2023 Hollywood writers and actors strikes, the cinema industry demonstrated resilience in the first quarter of 2024, with mixed results among major exhibition companies. While some companies reported lower revenue and attendance, others experienced a notable rebound, indicating a complex yet hopeful landscape.
Companies such as AMC Theatres were only slightly down from the same period in 2023, estimating total revenues of USD $951.4 million, rather than the previous year’s USD $954.4 million. Cinemark reported total revenue of USD $579.2 million for the first quarter, a 5.2% decrease from the same period in 2023. Even so, the company managed to earn a net income of $24.8 million compared to a loss of USD $3.1 million in the previous year.
IMAX meanwhile, continued to fire on all cylinders with blockbuster releases like “Dune: Part 2” and “Godzilla x Kong: The New Empire” helping the premium large format giant bring in USD $261 million in revenue, the third-highest grossing Q1 in the company’s history.
The European operator Kinepolis recorded a 9.6% decrease in visitors, causing total revenue to drop. Despite this, Kinepolis maintained strong sales per visitor, driven by demand for premium products.
Source: Celluloid Junkie
Cinemas
B&B Theatres Opens Upscale Family Entertainment Center in Red Oak, Texas
Amidst the Covid pandemic, Kansas City-based B&B Theatres expanded into the fifth largest cinema operator in the United States through strategic acquisitions. In March, the family-run company used the grand opening of their most ambitious multiplex to date to celebrate its 100th anniversary.
Yet B&B Theatres’ Red Oak 12 in Red Oak, Texas south of Dallas is better classified as a family entertainment center rather than a multiplex. Besides its 12 movie screens, the facility features a restaurant, three full service bars, a 16-lane bowling alley, 64-game full redemption arcade, a rock climbing wall and outdoor entertainment space that includes pickleball courts.
It took nearly six years to bring the project to fruition and 18 months to construct the 80,000 square foot (7432 square meter) complex. It has two premium large format auditoriums, including one with ScreenX, an auditorium with a play area geared toward families with young children and even one with chaise loungers. Upon opening the Red Oak 12 has quickly become one of the top earning theatres in the U.S. on certain titles and B&B is working overtime to keep up with the demand for the venue’s restaurant. As for the pickleball courts, if you want to play on weekends it’s best to arrive early to avoid an hours long wait time.
Source: Celluloid Junkie
Cinemas
Ōma Cinema Opens in Mougins, France
Ōma Cinema, a new move theatre concept, has opened its doors at a Cinewest location in Mougins, France, promising a one-of-a-kind viewing experience for moviegoers. Inspired by traditional Italian opera house balconies and futuristic sci-fi layouts, Ōma Cinema features innovative architecture that sets it apart from traditional cinemas.
The cinema’s unique design, created by architect Pierre Chican, incorporates circular seating pods as part of a premium auditorium concept. The patented concept’s ‘vertical’ seating structure is designed to concentrate seating pods in the optimal viewing area, moving the traditional ‘first row’ seats further back in the theatre and the ‘back row’ seats closer to the screen. This approach aims to both improve viewing angles and create a more immersive experience for viewers. Plus it looks really cool.
“We wanted to bring something different and offer viewers something special as part of a premium in-person visit, which couldn’t be replicated at home,” says Nicolas Chican, co-founder at Ōma Cinema. “We saw a lack of evolution in cinema design in recent decades and felt that architecture could be a powerful tool to deliver something unique.”
The Ōma concept is fully customizable and available for rollout to other screens across the globe, either to renovate existing theatres or in new builds. The first official screening at the 160 seat Ōma Cinema auditorium in Mougins took place on 24 April.
Source: Celluloid Junkie
Cinemas
Pathé Opens New Cinema in Ivory Coast
The French cinema chain Pathé has opened a new 6-screen multiplex at the Cap Sud shopping center in Marcory, Abidjan, Côte d’Ivoire (Ivory Coast). The cinema, which opened for business on 24 April 2024 cost over EUR €30 million (USD $42.3 million) to construct and is equipped with laser projection and about 1,000 seats.
Ivory Coast’s newest movie theatre features two VIP auditoriums, each with 44 reclining seats and 10 meter (33 foot) screens. The seat count in each auditorium goes up from there starting at 158 all the way up to the largest room, a premiere auditorium with 344 seats and an 18 meter (60 foot) screen.
Aurélien Bosc, CEO at Pathé Cinémas, explained, ”We are convinced that it is a country which has a long history of cinema. We said to ourselves that we must open a cinema with the best standards of modernity to offer the people of Abidjan something different, quality, comfort, an extraordinary technique and a place of life where people can enjoy a leisure activity.”
Source: Lomé Actu
Exhibitors
PVR INOX Introduces Ad-Free Movie Experience to Boost Attendance
In a move to revive declining cinema attendance, PVR INOX, India’s leading multiplex chain, has launched an ad-free movie experience in select luxury screens across major cities. The initiative aims to provide a a viewing experience akin to streaming platforms, while also addressing what the exhibitor claims is growing audience preference for reduced pre-show advertisements.
PVR INOX’s ad-free offering is currently available in its premium formats like Director’s Cut and Insignia in Delhi, Gurugram, Bengaluru, and Mumbai. The company plans to extend this service to other luxury screens in Pune and beyond, with the goal of increasing the share of premium screens in its total portfolio of 1,741 screens from 15% to 20% within the next 24 months.
Renaud Palliere, Chief of The Luxury Collection and Innovation at PVR INOX, gives one reason for the focus on premiumization, “Luxury in many ways has shown resilience in terms of occupancy which is not fully impacted by performance of movies.” Even so, he says, “Occupancy in premium format is in the high 20% percent to low 30% but it is not yet back to pre-Covid levels when it was in mid 30% to high 30%. This is because of volatility in content and box office earnings.”
Pre-show ad time is being cut from 35 minutes to just 10 minutes which is expected to enable additional showtimes to be added, which PVR INOX hopes will attract more audiences, boosting revenue from increased ticket sales and food and beverage spend. Naturally, movie trailers will still be shown.
Source: Business Standard
Sponsor Spotlight
Spotlight On CINITY
On CJ Cinema Summit 93, we learned all about one of the fastest-growing premium cinema formats; CINITY. Offering movies in 4K resolution, high brightness, high dynamic range, high frame rate, wide color gamut, in 3D images with immersive sound, we spoke to representatives from CINITY, Christie, Comscore, Lightstorm Entertainment and TrueCut. Watch the session on-demand or listen to the podcast.
Celluloid Junkie is the leading online resource dedicated to the global film and cinema business. The Marquee is our newsletter focused on motion picture exhibition; keeping industry professionals informed of important news, the latest trends and insightful analysis